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Weaker Dollar Is a Reprieve for Central Banks Hoping to Ease

  • Capital outflows triggered by pandemic have stabilized
  • All Asian currencies have gained against dollar since March
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Dollar Is Near 'Something of a Floor,' Says Cecchini
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The dollar’s weakness is giving central banks in Asia room to ease monetary policy further amid concerns that the region’s economic recovery is plateauing.

A 10% decline in the Bloomberg dollar index since its March high has stemmed a tide of capital outflows triggered by the coronavirus pandemic, and drawn foreign investors back into Asia’s capital markets.